Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today...
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Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.85%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the return over 2 years. Your answer should be between 4.02 and 22.46, rounded to 2 decimal places, with no special characters. Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.85%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the return over 2 years. Your answer should be between 4.02 and 22.46, rounded to 2 decimal places, with no special characters.
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we calculate the price of the bond today We can use the zerocoupon bond ... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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